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large majority it sends a signal. >> gretchen: watch the "after the show" show, "fox and friends," and stay tuned, a lot of coverage all day on the breaking news on the debt. have a good one. >> good morning to you, 10:00 in new york, there are dramatic developments this morning that might lead... might lead to a resolution in the debt matter, we're learning from congress and the white house, right now, working on a deal, a deal to keep the country from an unpress dentdz default. m -- unprecedented default and we are waiting and watching and there are developments, that we'll bring you up to speed on right now. i guess we should be in church... because it is sunday, i'm bill hemmer, good morning to you and great to be with you and jenna good morning. >> what are you doing here, how do you get called in here on a sunday. >> i say, yes, boss, i'll be
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there. >> like church in that way. and we're glad to be here, on a big news day. we welcome you to america's news headquarters and lawmakers are racing against the clock, to finalize the possible deal before a scheduled vote on a democratic senate plan in three hours, and house speaker john boehner says he's hopeful and lawmakers will craft a package that can earn bipartisan support. >> i'm not going to put any deadlines but i think it is clear, should be clear to all of you, that senator mcconnell and i believe that we are going to be able to come to some agreement to end the crisis, as soon as possible. thanks. >> peter doocy live from washington with more, and what do you know about the phones deal. >> reporter: a senior republican leadership source told us what is in the framework of the tentative deal between republicans and the white house and it likes lot like the original boehner plan, but, with the timeline the president wanted. it would take us through 2013 and here's specific, a $3 trillion plan, that would raise
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the debt ceiling between 2.1 and $2.4 trillion. and cut a trillion dollars in spending right now, and, put together a special committee to figure out exactly how to cut more, until the amount of cuts equals the total amount of the debt ceiling increase and that committee has to recommend the cuts by thanksgiving. if they aren't approved at the end of the year it will trigger across-the-board cuts, tax cuts to medicare and uncapped cuts to defense and this is tentative now, because the triggers, we have heard about have been the sticking point to any deal going on. jenna. >> we'll see what happens. we have the deadline of tuesday, something needs to be done and that is what the president put out there, as the deadline before we are up against a default and all the other legislative hurdles we have to get through in congress before something can be done so when can we expect a deal to be done. >> even with all of that, very soon at least according to the senate minority leader, mitch mcconnell, listen:
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>> i can confidently say that the debt ceiling increase will avoid default which is important for everybody in america to know, we will not have a default for the first time in our 235-year history. we're not going to have job-killing tax increases in it and we'll deal with the problem, the american people sent us here to deal with, which is the government has been spending too much. >> steve: that is mcconnell from a few minutes ago and chuck schumer said something similar and he said he thinks he sees a light at the end of the tunnel: >> if there is a word right here that would some up the mood, it would be relief. relief that we won't default. that is not a certainty but, default is far less of a possibility now, than it was even a day ago. because the leaders are talking and talking in a constructive way to come up with the solution. that would avoid default but there are lots of things that are not filled in and many more
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discussions to go. >> if something is to go haywire and the deal doesn't get done, gene spurling said on fox news sunday today the treasury is working on a contingency plan, and congress could soon be briefed on what that plan is. jenna? >> a lot of moving parts, peter, thank you so much. bringing us up-to-date. peter doocy in d.c. today. >> we have followed this and you now the far right and the far left have been driving a pretty hard bargain. and whatever comes out of the so-called agreement is not peckett expe expected to make lawmakers on the far right or left happy and can there be enough votes to get a deal done, north dakota senator john hogan, has supported the speaker's plan and the balanced budget amendment and senator, good morning to you, how are you. >> good morning, bill, greetings to you and jenna. >> thank you, thank you. it is good to have you on the program. we're trying to piece this together and trying to follow it as we go.
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based on what you know about what senator mcconnell said an hour ago, is it the foundation or a framework that can move forward? >> i think so. i think we are tracking and working to get something close to the boehner bill that came over from the house. and, we have been working very hard on that. i talked to a lot of house members yesterday, and i think we are very close. >> a trigger. what is being talked about. a trigger is a mechanism congress would establish for additional cuts that would be tied to an increase in the debt ceiling, again. in your view is that a good idea? >> i think it will work and wield have a passage that is $3 trillion in savings and we need to. i mean, we need to get this fiscal house in order. and the way it will work is in two pieces or two tranches and the second tranch of roughly $1.8 trillion in savings that we need to get, we have got to know that those savings are going to be there, for any increase in
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the debt ceiling. so, the trigger mechanism is very important, and, it may be tied to a balanced budget amendment, or something else, that makes sure that we get these necessary reductions. >> if you have to go to the well twice which i believe is what you are saying, the issue remains with the current congress, correct? >> well, exactly. we have got to know that for any increase in the debt ceiling, we have got more in savings and reductions, and that is the key here to get us back on the right track, to a fit and sound situation. >> is that sound and responsible when we continue to drag this out? there are two ways of looking at this. you gave the signal to the markets things are not settled and we'll be back november, development, possibly next year. >> no, the way it will work... >> the other idea is and you probably agree is that you would force congress to examine
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additional cuts. and those would be necessary in order to really start to dive into the debt and carve a way out of it. is that the way you see it. >> that is exactly right. you are talking about roughly a trillion dollars in reductions up front, with a committee, a bipartisan committee, 12 members, 6 from house, 6 from the senate that brings forward a package by, say, thanksgiving for a straight up-or-down vote and those reduction, 1.8 to $2 trillion, for a total of $3 trillion, have to be made. have to be made, for that debt ceiling increase to occur, and, then there will be some kind of protection or trigger mechanism like a balanced budget amendment, for example, that goes into play, if that is not done, so we are assured -- assured -- that those reductions take place. again... >> would that be acceptable on the house side after we just watched on friday? >> you know, i hope so. what we are trying to do is get something as close to the
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boehner proposal that came over to the senate, back to the house, to finish this up and, i think we can. >> okay. >> it is important we get it done. >> i agree with you on that. i think everybody is in agreement... most people are, who agree the debt ceiling needs to be higher. do you expect a deal before midnight on tuesday? or is it a typical case of washington, when confronted with the massive issues to go to the 11th hour? >> now i believe we'll have a plan that will work to put through today, i'm not sure of the timeline, we're still working on the vehicle, whether the boehner bill, resurrected or whether we use something else like the bill passed out of our committee, passed both houses, will somewhat dictate the timeline but we are shooting to make sure. once we have the plan in place we'll make sure it fits so we don't have a default issue with the timeline. >> and you convene at noon today, right? and there might be a vote at the 1:00 hour.
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>> exactly. >> at what point do you go with the other members and say, okay, what is it, mitch mcconnell, what is on paper now. >> already doing i we're at on r basis, through last night, talking to our members an reaching across that the house and doing everything we can to get the deal done. >> senator, thank you for your time. out of north dakota. we'll see whether or not it happens. have a good sunday. we'll watch from here. jenna. >> a busy day ahead indeed, the debt debacle, a manufactured crisis according to democratic congressman john garamendi, on fox and friends earlier this morning, take a listen: >> i'm not sure anybody can tell you exactly what is going on but we need to solve the problem, and, unfortunately, it is' manufactured problem and we did not have to have the crisis but here we are in the past 74 times the debt limit has been raised without having a crisis and somebody wanted to have a crisis and so we do. and what will we do? we can solve it. it's not a matter of blame, the republicans clearly set out,
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early on, to try to use these various leverage points to push in place their policies, and, they have done it four times, and this is the last of the four, and i expect we'll see this again in the future. >> he voted against house speaker john boehner's debt plan and he says he'll support the president if he chooses to invoke the 14th amendment when the president decides to operate unilaterally. >> a lot of folks wonder what happens if you don't get a deal by tuesday and what happens starting wednesday? do paychecks stop going out to federal employees? a list of priorities? does it include our military? the chairman of the joint chiefs is admiral mike mullen, he is in afghanistan and he said when he was asked the question, he's not sure what happened. >>... (inaudible) in our government defaults, where will
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that affect service members? i don't have the answer. we are focused on making sure we don't have it affect people already in the military. >> that was hard to pick up, the words are on the screen, and, he met with servicemen in bases in southern afghanistan and he's confident they will get paid and more confident the mission will continue in afghanistan, uninterrupted. >> we have this "fox news alert" for you, from overseas, now, we could soon learn the verdict for the american held in iran two years on spying charges, josh fattal and shane bauer were arrested in july of '09 after crossing into eastern from iraq and, they say they made a simple mistake and today was the final court session of their case, according to a judiciary spokesperson in iran and a lawyer for the hikers says we'll know the verdict within a week, under iran's islamic law, espionage can be punished by
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execution and, again, the state unknown and sarah shouer, was released already, and she says he is not going back to the trial. >> a dozen were killed, amateur videotape shows the attack on anti-government protesters, what we believe came out of the town in syria. no way to verify it. it is difficult to get western reporters in syria to cover the story and security forces we are told firing at protesters out of tanks and setting fire to civilian vehicles an activist on the ground, claiming at least 45 have been killed. in the latest attack. and, that boys 130 miles north of damascus, the capital city, a hotbed for demonstrations now, for months. >> for the first time, the u.s. formally is accusing iran of forging a secret deal with al
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qaeda, helping them funnel money, weapons, fighters to the group's bases in afghanistan and pakistan and officials at the iranian mission in new york are calling the allegations totally baseless. and, our next guest, see if he agrees, ambassador john bolton, former u.n. ambassador and a fox news contributor. baseless or not. >> good morning to you, this is something many people have felt was going on for some time and the treasury department's own announcement says they can track iran's assistance to al qaeda back for five years, and i suspect it went on longer than that and, it has a dramatic effect, i think, on what we are all talking about, today, as we look at this debt ceiling issue. you had al milladmiral mullen o with the troops in afghanistan and, with the efforts in afghanistan, and to see the full efforts and larger defense
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budget now at risk in these debt ceiling talks, i find it absolutely unbelievable. >> let's talk more about that timing, again, the first time our country has formally accused iran of this, and as you said, rightfully so, this is rumored for years, what do you make of the timing? >> well, i think this is probably something driven by internal treasury department bureaucrat bureaucratics, they put it off as long as they could and, finally the evidence was overwhelming but i think it should factor into all of our assessments about what is possible, with iran. there are dreamers out there who say iran will be helpful in afghanistan. obviously, not. they are trying to kill american troops. in afghanistan. and, iraq. and the administration still believes they can negotiate an end to iran's nuclear weapons program. and i think this demonstrates just how good the iranians are, at deceiving us and for how long they have been able to do it.
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>> it is interesting when we're so focused on domestic issues, there is always something overseas you can be missing in the news cycle. and, let's talk about the war on terror. what does it tell us? the relationship, this time? what does it tell us about where we are, in the war on terror? and whether or not we're winning? >> you know, the rest of the world isn't going to wait around for us to get our economic house in order. and, this is a good example of it. the idea that because usama bin laden has been killed, which is an unmitigated good thing, for america and civilization, that that means somehow, al qaeda has been weakened and this war on terror is nearly over and the declaration by the treasury department is conclusive evidence to the contrary. al qaeda mass as sized -- metastasized in the last ten years an exists in places where it didn't even existence years ago and as we come up to the tenth anniversary of 9/11 it
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behooves all americans to appreciate the war on terror, still going on and the terrorists are still after us and are still trying to kill americans, overseas and here at home and this is the last moment when we should be letting our defenses down, or gutting our defense department budget. >> and that brings us to the final question here, ambassador. what do we do about that? what is this game plan? >> i don't think this administration has a game plan, it doesn't want to talk about the war on terrorism and tried for two-and-a-half years to find some iranian leaders to negotiate with, over the nuclear program, it failed to take adequate steps, to help the iranian opposition, and a whole range of things it could be doing against al qaeda, in many countries around the world. it is not... so, i think we need a serious national debate. do we want a strong national defense? a president who protects american interests? do we want a defense department budget that is not completely hollowed out? these are critical issues for
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americans. >> are you thinking of jumping into 2012. >> every time i get on the subject i think about it more and the debt ceiling negotiation, republicans need to stand firm against the risk of defense budget cuts. and, hopefully, there are pro defense democrats who will do the same. >> we'll continue to watch it, thanks so much for your perspective, thank. >> thank you. >> want to get back to the debt deal, too and whether or not we're any closer. you have been watching the back and forth, since friday and saturday... >> a good question, bill. >> because there is is a meeting again today and the debt ceiling deal to keep the country from getting any worse than we are here, right now. it might be too late in some respects, we'll talk to john fund of the american spectator about how the weeks of fiery debate impacted the country and john fund is on deck. >> and behind closed doors they are working on a compromise and we are hearing from some people on fox news sunday. bret baier has a preview. >> if we have to risk our weak economy with so many people
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unemployed and businesses facing higher interest rates, which is bound to happen now, because of this brinkmanship we are engaged in here, is not a good way to run the nation or the economy. looking good! you lost some weight. you noticed! these clothes are too big, so i'm donating them. how'd you do it? eating right, whole grain. [ female announcer ] people who choose more whole grain tend to weigh less than those who don't. multigrain cheerios... five whole grains, 110 calories. host: could switching to geico reon car insurance? or more host: do people use smartphones to do dumb things? man 1: send, that is the weekend. app grapgic: yeah dawg! man 2: allow me to crack...the bubbly! man 1: don't mind if i doozy. man 3: is a gentleman with a brostache invited over to this party?
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>> a stair -- >> a story from overseas, chinese denies they resumed train after a crash, which injured 190 and the bullet train rammed in to the end of another train, causing 6 carriages to be derailed and four fell to the ground and authorities are accused of mishandling the rescue operation, after a two-year-old was found in the wreckage, 12 hours after crews
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had been ordersd to stop. -- ordered to stop. . >> they are still working today and did not have a weekend off, lawmakers in the capitol, especially on the senate side appear to be closing in on the potential for a deal to raise the nation's debt ceiling. and two top senators, siting down earlier today on fox news sunday with the host, bret baier, here's part of that. >> i will tell you i have a much more positive feeling than i did 24 hours ago, and there is an active negotiation underway, and i think some of the things that are coming forth, hold promise, and, key elements are still being resolved. >> republicans have also been very focused on ensuring that we do not get into position where we can't pay our bills and where the things that american people rely on, will still get to them, in time. and, as a result, the leaders in both parties were fixed on the obvious second date, too bad we had to get this close to it. >> they are not done yet, bret
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baier, the host of fox news sunday, working for chris wallace, how are you doing, bret. >> bret: hey, bill. >> you had a lot to talk about, you had two senators and kevin mccarthy from the house side and did you have a white house economic team. >> gene spurling, director of national -- >> i'm watching what mcconnell is saying on another network and schumer on another network and i guess, viewers waking up this morning, trying to figure out where we are, where are we? >> try planning a sunday show. it is a little tough. a little fluid. and the questions were a little, you know, by the minute we changed what we knew about the plan that was developing. after talking to gene spurling, the director of national economic councils, and the house madge the jo majority whip, kevin mccarthy, there is a sense that the deal is congealing, coming together and there is still some issue with nailing down what is called the trigger.
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or the penalty. i'm explain that, i'm sure you have, but basically you get the debt increase, senator mcconnell said close to $3 trillion, but you get the debt ceiling increase and about 6 months in there would be a disapproval, congress would have to disapprove and to override that you need a 2/3 majority in both houses and that will not happen, and the president gets his $3 trillion debt ceiling increase and you get $1 trillion in cuts up front and a select committee, special committee of lawmakers comes together to do the other $2 trillion of cuts. the question is, if they can't come to a conclusion, of what they agree on, then, it would be a president or a trigger, and, the debate now, is whether that is across the board cuts including medicare comes, and defense cuts, and, tax increases, the tax increases have been taken off the table and is leaning towards the
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republican way and not something the democrats will be too happy about, but the president appears ready to sign it. does that make sense. >> yes, a couple things here. let's say the committee is made up of 6 republicans an 6 democrats. and 6 democrats, fair guess? >> 5 and 5, yes. >> and they get together, and the five democrats say, all right, this is our plan, and the five republicans, say, well, this is our plan. which would suggest the committee itself would not be able to agree on what cuts there should be in the entitlement programs and if you reach thattal pass that would happen. >> that is the trigger and the penalty. take the gang of 6, a bipartisan group that had agreed on some consensus going forward, they were feeling good about where they were and you take those 6 and maybe expand it by one on each side that is your
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committee. and you start there and that is perhaps where the additional cuts go. and is the thought is a consensus is starting to build on where the cuts are, both with entitlements and across-the-board cuts. >> i understand republicans like that idea because it keeps the debt issue out there, front and center, right? >> it does. >> and they like it because that way they could, especially the republicans in the house could continue to cut away, at the debt, and at spending, without developing new taxes. do i have that right. >> you do. here's the other part of it. if a balanced budget amendment is included, we understand that a vote, a promise of a vote, not that it has to pass, but, a promise that both chambers will take a vote, will be a part of the deal as well. now, that is not going anywhere, because, you are not going to
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get 2/3 majority in the senate to pass that, but it is what tea party republicans in the house have wanted and so that is a flavor for them, and, will likely be thrown in there. so, the big sticking point, right now, is what the penalty looks like, if the committee does not get to all of the significant cuts. >> i know mcconnell was optimistic earlier today. i don't know how the senators were with you, but, i think this is still an 11th hour deal and you will be working late night on tuesday. see you, brett, see you on fox news sunday, and, gene spurling, as bret mentioned there, and don't miss the exclusive interview with the house majority whip, kevin mccarthy and senators durbin and senator kill, all on fox news sun. >> we're getting closer to the noon hour when the senators return to capitol hill and, let's see what happens. right? and, until they are in session, we don't know.
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>> dog days of august. >> supposed to be calm and easy and it's not. there's a lot of breaking developments and we'll be asking the question, how the debt negotiations affect your money. talking about wall street and the global markets and with neil cavuto, who has not moved from the halls on capitol hill since friday. we'll see how he's doing. >> and also, a report out it shows iraq is more dangerous now, perhaps, than a year ago. we're learning contractors are overbilling at a cost to you, the american taxpayer and details ton what we're learning about that investigation. [ cat meows ] ♪ [ whistles ] ♪ [ cat meows ] ♪ [ ting! ] [ male announcer ] travelers can help you protect the things you care abt and save money with multi-policy discounts. are you getting the coverage you need and the discounts you deserve? for an agent or quote, call 800-my-coverage or visit
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>> a floourz, new -- >> a "fox news alert." new signs of a compromise involving the debt crisis, some details are trickling out of washington and we're told the white house an republican leaders are making progress on a $3 trillion plan to raise the nation's debt ceiling. house speaker john boehner says he is hopeful. >> in spite of our differences, i think we are dealing with
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reasonable, responsible people who want the crisis to end as quickly as possible. and i'm confident we will. >> wall street and global markets are keeping a close eye on what is happening right there on capitol hill, the dow closing down friday, 6 straight days, and, what of these details emerging on the deal? we talked you a little about it with bret baier moments ago, and neil cavuto is joining us from capitol hill, the same exact place he joined us on friday. neil, you haven't moved a bit. you stayed right there? >> i stayed right there. well, i tried to break into mike emanuel's house, and, he ignored my entreaties. >> and called the police. >> and called the police, get this guy out of here! >> that is happening right there in front of you, i guess, to keep you busy, because, we are just hearing some of these details about this tentative deal, we are hearing and the question we have for you, today, is, which part of the plan, the tentative plan, will have the most effect on the average american? the average joe?
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>> well, i think in the end, it depends not so much whether you get approval in the house and/or senate and, i mentioned mike, far more up on that than i'll be but i'm up on how it might go down with the financial markets, a $3 trillion figure. and, they really wanted to see $4 trillion, cut over ten years. and that is the benchmark the folk at moody's investors and ratings agencies said, and s&p said and fitch investors, and the ratings agencies have all said that that has to be kind of the basement figure, $4 trillion over ten years. and, the reason why they said that, that is the only way you can seriously get an indication, that you are serious about spending. how, having said that, $3 trillion, not $4 trillion, won't cut it, the issue becomes then, are those cuts going to be near rather than longer-term? in other words, are we going to show resolve and cut spending right away, or will we show it
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much later down the road? and now to your far more important question, how it resonates for average folks, if the market sees it's not serious enough or the folks at moody's or s&p say it's not serious enough, passage in the house and sentence and eventual signing by the president will in the matter. we'll likely see a downgrade because it isn't of the magnitude the ratings agencies wanted. and, in the events of a downgrade, you could see higher rates and the effect would be immediate on individuals. so, we'll have to see into it leads to the next question of what does a deal like this get us. you mentioned the downgrade. would it get us out of the defought and the ground gradown peace of mind so it isn't dangling over our heads. >> it buys folks and may buy the markets time and i thought we to the ratings agencies, especially
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the american ones, and people will come to the front doors of the agency with pitch forks and it will not go down well but it could give the ratings agencies wiggle room as they turn the data and see if it matches what they expected to see. so it kind of allows everyone to cover their respective hineys. and, then, longer term, the question is are we getting our spending under control longer-term? again, it depends on how it really details and a lot of these cuts are in outer years, and keep in mind, bill brought that up, earlier, with brett, i mean, you have to look at something that has teeth in it and that brings you those cuts, sooner rather than later, because, you are telling future presidents and future congresses to agree to something whose math might be specious anyway and i don't want to be a... you know, from what i see, and hear, this doesn't cut it.
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>> doesn't cut it. interesting, coming from you, and, also, i think you are the only one who can talk about the debt deal and the economy and throw away recollective hineys, and a way of talking about compromise. thanks for joining us, you have your show later on and the action in washington is changing rapidly from now until 4:00 p.m. and will change immensely, neil will monitor this all day and into the week and later this afternoon, you can catch a special edition of "your world", 4:00 p.m. eastern time, live from capitol hill, only on fox news channel. >> mike manuel has a new roommate. >> a pretty good one. >> i would agree with that. mike has to convince his wife of that! there's a new report on the rebuilding of iraq that shows contractors soaking the american taxpayer. and the report by a special inspector shows the contractors overbilled the government by as much as 12,000%. in one case, a subcontractor
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charged the pentagon $900 for a $7 switch. not good news, five months before troops get out of there. steve centanni is in washington, and, good morning, steve. general thrust of the report is what? >> well, i mean, for... the main point is that things are not as rosy in iraq as u.s. officials have been saying. here's what the special inspector general for reconstruction in iraq is saying and i quote him, iraq remains an extraordinarily dangerous place to work. it is less safe in my judgment, he says, than 12 months ago. we're going backwards in terms of safety and says, it's a summer of uncertainty as the u.s. and iraqi government decide whether u.s. troops will remain past the december deadline for a pullout and if so, how many and violence has been on the upsurge, here's examples outlined, in the report: 15 u.s. soldiers were killed in iraq in june making it the bloodiest month for the u.s. military in the country in two years and there has been an
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increase in rockets launched against the green zone where the embassies are located. and, constant assassination attempts on top of that, all in all, not a great picture, bill? >> what about these contractors in iraq and what kind of forms of abuse are in the report? >> overcharging the government as you said, the report singles out one company, based in northern virginia and the subcontractors, the report says the government was charged $900 for a control switch, valued at $7.05. and $75 for a piece of plumbing equipment, valued at $1.41. and, $4500 for a circuit breaker that you could buy for $183.30. and, there has been no official response to the charges from the company and, susan collins, senator from maine, weighed in on this saying the state department refused to provide documentation to help the inspector general in its investigation and she calls all of this absolutely unacceptable. bill? >> indeed.
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steve centanni, thanks, in washington. what's coming up, jenna? >> lawmakers as we said are inching closer to a possible debt limit deal and the words are... inching, moving towards... >> i wish it were true. >> we'll see if it happens, the tentative plan would carry the government into 2013 and will be enough to satisfy those tloevon left and the right. >> we don't want a deal of the day. we want a long term solution to put us on the path. the american people deserve to know the truth about the budget, we have been telling them that. we have said, no more budget tricks, no more accounting gimmicks. we have to make certain we are on our way to fiscal health. >> on that, does the plan that the head of some of the leaders here help fix the nation's fiscal crisis? and john fund, senior editor of the american spectator weighs in
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on that. >> and for two years they have been in jail in tehran, iran and there is word, this morning, that a verdict is coming soon to the american hikers accused of spying and that story is next. also... [ p.a. announcer ] announcing america's favorite cereal is now honey nut cheerios! yup, america's favorite. so we're celebrating the honey sweetness, crunchy oats and... hey! don't forget me!! honey nut cheerios. make it your favorite too! vietnam, 1967. i got mine in iraq, 2003. u.s.a.a. autonsurance is often handed down from generation to generation, because it offers a superior level of protection and because u.s.a.a.'s commitment to serve the military, veterans, and their families is without equal. ben your lega. get an auto insurance quote. u.s.a.a. we know what it means to serve.
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is besabsorbed in small continuous amounts. only one calcium supplement does that in one daily dose. new citracal slow release... continuously releases calcium plus d for the efficient absorption my body needs. citracal. >> we're getting whispers, whispers of significant progress towards a debt limit deal that comes after weeks of mixed messages and neither side seeming to agree on the state of negotiationses. and, late last night, senate majority leader harry reid said this: >> i appreciate everyone's patience, and in our most difficult times we find in the history of our country. the negotiation are going on at the white house now. on a solution that will avert a catastrophic default. >> is this the light at the end of the tunnel or is the damage politically and for our country
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already done because of the process? john fund, a senior editor of the american spectator and that is really a broader question, john. we talked about who wins and loses, republicans or democrats and what about us, the american people having to watch it go down. is the damage, the perception of our political system, already done and can it be repaired. >> well, winston churchill said government in america will always do the right thing but first it must exhaust all other possibilities and frankly, like people don't do their homework until there is a term deadline... >> we did that as kids. >> we all did, except for a few and i think the crisis was unfortunate but focussed the attention on people that we have to get or debt situation under control. and, now the leadership is coming towards an agreement. and the problem is, there are the rank-and-file members in both parties who will be upset by this and the tea party republicans are not going to be happy, because it really kicks the can down the road and doesn't have a balanced budget amendment firmly attached to it
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and the democrats will be upset. look, they are about raising taxes. and that is what they say they would have to do and none of that is in there and the rank-and-file of both parties will give the leadership heartburn the next 24 hours. >> use your homework analogy and you leave your homework to the last minute and we all know what that is like, you tend to rush through night but you get it done. >> but the question is, the quality of the work, right? >> that is why the big hang-up is the triggering mechanism, because, it is a trillion dollars in tax spending cuts over the next ten years and there's 1.4 trillion that is off the table and will be decided in a year from now. now, here's the problem. how do you make sure congress finishes its homework a year from now? that is the issue. the trigger is, if congress doesn't have the spending cuts, what will happen then if they don't do their homework? and in this case the agreement so far is they'll be across the board spending cuts but weighing heavily on defense spending than on medicare spending and that is
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going to make republicans nervous, because they think we have already cut defense spending enough. >>ing it. >> it is interesting you bring that up, there is not a lot of work on entitlement reform that would help reduce the deficit in the long term and everyone says he have to do that but that is not a specific part of the plan we have. >> the entitlement reform will be difficult because obamacare is coming on stream and we are adding 30 million more people to the health insurance roles and half will be put on through medicaid which is the health program for poor people, and, that will make entitlement reform difficult because, of the expenses are boosted a lot an social security is easier to solve, because we can raise the retirement age again. >> easier, right? because it is easier... >> by comparison. >> relative terms. >> the american people have to get used to the fact they have been led done a primrose path
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and now we are broke and we'll have to allow people to rely more on their own resources and, give them incentive for saving. >> let's talk about the role of the people in the. because, again, we turned over to the politicians and there is' crisis of confidence in congress according to polls at least but the question becomes, as individuals, as american people, you know, where is our role in demanding certain changes, regardless of the party? what are your thoughts on that? >> we'll have a 2012 election and it will be settled. now there is gridlock and we have a democratic senate and a a almost divided house and in '08, people elected barack obama and hope and change has not work out as well as they hoped and now, another election in 2010 and the 12 election will break the tie. >> so much can happen between now and then and we have seen that before, john, nice to have you, thanks for coming in on a sunday. >> a pleasure. >> appreciate it. very much. big issues here, bill. >> it is true when you look at
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$14 trillion. how often we have overlooked that. and, how often we have raised the debt ceiling, time after time after time. >> credit card. >> and now you are at a point when you see the giant numbers scrolling across the screen you think, what is going on here! that is focusing the attention of the country. >> otherwise, we become greece if we don't pay attention. >> i love athens and i like feta cheese but i don't want to live there. they have been in jail two years in iran and the american hikers one step closer to heading home, there are important and new development, breaking out of tehran at this hour, we'll talk about that. >> and think of their families with all of that news and all eyes on washington as we have talked about as americans ask, can a debt deal be struck? the gloves are off. >> let's stop calling names and get to work and come up with a decision and move forward. the american economy, and, our ratings are too important.
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>> reaction from around the country, from biggest story of the day, the debt crisis, florida governor rick scott sounding off, saying republicans and democrats are not dealing with washington's real problems. reckless spending. >> we have to prioritize how we spend our money and there is not unlimited revenues out there. for the state or for the grfedel government, we have to make sure we have the right safety net for the people who have put money into social security and people who have put money into medicare and relied on medicare and, you know, in our case, you know, the federal government with a portion of medicaid and unemployment insurance, all of these things are important. >> lots of comments, lots of reaction be and we're closely watching the developments in washington today. and, a deal to raise the debt
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ceiling, could come as early as tomorrow, strong emphasis on maybe, possibly, could... >> and perhaps. >> perhaps. that's a good one. >> we'll find out as the hours tick by now. to the rise of freedom, we are seeing amazing progress. this in lower manhattan, the rebuilding of the world trade center site, the future memorial that will be opened to the public on 9/12. organizers are using items that survived the attacks to help tell the story of september 11th and the newest addition, an important one, arrived this week. our shepard smith has more on that. ♪ >> it was found in the twisted steel and rubble of the world trade center. many working on the pile first searching for survivors, and
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then for victims, say they found peace in its existence. in october, 2001, it was led by father brian jordan. >> many lear roheros died here still live here and work her and, they will be with us forever and forever, amen. >> another question asked that day, where is god in the midst of all of the horror and atrocity and i think for the people who saw that cross, it wasn't that god was that the cross but it was a presence of god in the midst of the tragedy and the presence of god with all of those people who gave of themselves in heroic actions, trying to rescue people that day and days and weeks and months afterwards. >> in october of '06, the cross was moved, but, rather than end up in storage, it was placed outside of st. peter's church, a block from the world trade center. >> a great honor and has been a congregating place for many tourists who visit the 9/11
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site, lay flowers and wreaths and say a prayer and it has been a religious focus for many people. of all different faiths. >> just days ago, the process was blessed again. and lowered into the permanent home. the national 9/11 museum, which will open, next year. father madigan has been at st. peters since 1999 and witnessed lower manhattan's change in an instant and now, he sees a change again. >> the tragedy, the resurgence, is rising now, young families are moving in here and, this is the kind of place of life and renewal. >> it is remarkable when you go there, thanks to shepard smith and the series you can catch at and you can watch the rebuilding on our web site there. they are now saying it will be the most visited site in america. and, the families of the victims have full access on september 11th, the ten-year mark and starting september 12th they are
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giving out 6,000 tickets a day and if you go to the web site, 9/11 you find september is sold out. and, they are sold out halfway into october. and are going fast, too, all free and they ask for donations to help with the maintenance charges, down there which will be substantial, but, this will be a place for all americans to come. and remember the events from ten years ago and interesting to talk to folks in new york, folks say i have no interest in visiting there. but, if you are so inclined, the next time in new york, come the fall, please do it. it will be quite a place. >> good place to visit, and, a "fox news alert," in the meantime, closing in on a possible debt ceiling compromise. the latest out of d.c., just ahead. 're re-inventing aspirin for pain relief. with new extra-strength bayer advanced aspirin. it has microparticles so it enters the bloodstream faster
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>> rick: it is 11:00 in new york city, 11:00 in washington, d.c., and a fox news alert on sunday morning. lawmakers at the moment say they are closing in on a debt ceiling deal. we have heard that before. we're hearing it yet again. we are told there is a tentative agreement that is being worked on between members of congress and the white house. if it goes through, it would keep the government up and running, pay the bills till the year 2013, hike the debt ceiling up several trillion dollars, among many other things that has yet to be worked out entirely, right? welcome, everybody. i'm bill hel hemmer. you have don't have to change your set.
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this is a sunday. but this is important news. good morning, jenna. >> jenna: good morning, bill. i'm hearing from the viewers that we're confusing them, they wake up and think it's monday morning. it's not. it's sunday. >> bill: the debt details are confusing. >> the lawmakers are hinting they will have a done deal on the debt ceiling before the tuesday deadline. take a listen. >> i'm confident and optimistic we will get an agreement in the near future and resolve the crisis in the best interest of the american people. let me just add, you know, our country is not going to default for the first time in history. that is not going to happen. we now have i think a level of seriousness, with the right people at the table that we needed and thought we had as the speaker indicated last weekend. we're going to get a result. >> jenna: let's find out why
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there senator reid believes that. chief white house correspondent ed henry live at the white house. that is the place to be. ed, what about this deal? what is in it that looks like it's going to work? >> jenna, there are two key elements that look like they could work because frankly they've been talk about the elements for days now, that they largely agree on it. that is basically to have about $2.8 trillion, maybe $3 trillion in hiking the debt ceiling, in exchange for spending cuts of dollar for dollar. what that means is the trillion dollars in spending cuts up front, that we will see on paper in a few days, $1.8 trillion to $2 trillion in more spending cutting that special committee of congress will be reported to work on and report back with a deadline by thanksgiving. the key sticking point that has been there for days and is still here at this hour is what is the trigger? what is the mechanism, the penalty if you, will if the special committee fails to come up with a second round of
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spending cuts? gene sperling, one of the president's top economic advisors was on sunday sunday sayin"fox newssunday" saying thy part of the deal. >> he supporting having some kind of a straitjacket on all of us, saying if you don't get your work done, there will be action taken to make sure we do get debt reduction. here is the key. whatever that enforcement mechanism is, it has to give both sides an incentive to compromise. >> the reason for having what gene sperling called a straitjacket, we have seen many commissions in washington, study the problem of deficit reduction and come back with a report they put on a shelf somewhere and it collects dust. this one will have real keys to get the votes to get through both chambers of commerce in the next couple of days because people heard the song before. they want to see it be real cuts. >> jenna: real cuts indeed.
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we talked so much about the house speaker, about the majority leader in the senate. and we have heard reports about meeting at the white house. the broader question, ed, how involved is the president in this compromise we're hearing about now? >> well, you know, the white house has been quite frustrated in recent days. the questions, the republicans keep pushing, the notion, the narrative that the president has been sort of checked out, has not been heavily involved. their view at the beginning of the crisis, he was convening leaders here, basically every day. but after speaker john boehner walked out of the talks twice, and basically said look, congress is going to work this out. the president was trying to stay out of the way. as a result, you now have kevin mccarthy, the republican whip in the house on "fox news sunday" with bret baier this morning saying he believes the president has not been involved enough. take a listen. >> speaker boehner has been the leader on this in changing washington.
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first we're cutting, before we were spending. the president to me has been somewhat -- you cannot be the leader of the free world and sit on the sidelines and tweet and think you are going to get the job done. we have be out front, negotiating, talking, but we have laid out clear set of principles that we're going to bring accountability back and change the way washington works. >> well, and when you talk to the white house officials they say the president is heavily involved in the time hours. he is going to also be heavily involved to sell this through both chambers of commerce no doubt as well, bill and jenna. >> jenna: a real quick question here. not to get too touchy-feely but i to ask you this. does it feel tense down there? does it feel like there is compromise in the air? does it feel like there is relief? what is just the feeling standing outside the white house right now? >> i can boil it down from one sentence from the staffer involved in the talks who told me this morning we're real close to a deal, because we have to be. neither side is willing to
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come together. there are still raw feelings here but tension hanging over the white house and the capital right now, at this hour, because both sides realize the economy's back is to the wall. the economy could crash if they don't get a deal, number one. the backsides are to the wall. they have an election, both parties to face, and they could get the blame if it falls apart. that is pushing them to get it. >> jenna: maybe bill and i can do a version of "kumbaya" to help that out. >> i would love to see that. >> jenna: nice to have you. thank you for the perspective. >> bill: i'll bring that in. >> jenna: i like that. six-string -- okay. what would really happen if the nation fails to raise the debt ceiling by the deadline on tuesday? the truth is, really, that nobody knows for sure. some say the country may not have enough money to pay all the bills. some say that would not be the case at all, though. we do have the money to do this. does it mean the $23 billion
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of social security checks set to go out on wednesday could be in jeopardy? that is a big question for a lot of families out there. the answer is not necessarily. we don't know about this. the bondholders may not have to worry. they still could get paid. that is important. that way the country stays away from any chance of a default. now, there is also the question about a downgrade. both of these things are up in the air. we have never been downgraded as a nation. that means our credit worthiness would be questioned. so a lot of big question marks. >> bill: a week ago on sunday when everybody was talk about the asian markets open at 6:00, east coast time. they gave at it pass. not much of significant impact here. over the course of trading, for the week, down 500, 600 points on the dow 30 but lat of people think it's due to economic growth. you saw the gdp number on friday. first quarter growth was anemic. second quarter growth wasn't
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much better. which givings you an indication on how strong the economy is right now. a lot of folks think we're flat lining. alaska senator lisa murkowski taking her colleagues to task on the debt debate. here she is on the floor of the senate last night. >> i think what the people have seen as we have engaged in this debate is something that does not do justice to the integrity of the institution. we need to get back to that point. where we can engage in good debate. and disagree heartily and make our argument without being disrespectful of one another. and the perspective that we as individuals, representing our con touch whensies, our state, bring to the table. so the hour is late. we'll have a vote.
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at 1:00 in the morning. how dignified. what body comes together at the darkest hour? >> bill: the vote did not happen. it was scrubbed bier harry reid late last night. but in less than an hour the senate convenes yet again and we expect a vote sometime after the 1:00 east coast hour. murkowski went on to say the only thing congress has managed to do on a bipartisan basis in the last few days is incite fear in the american people. that was on the floor of the senate last night. >> jenna: the fear factor, as you were talking about, bill, major factor in the market and how we feel about the government in general. some progress as we mentioned and ed talked about, made in the debate. the senators set to meet an hour from now. that's when they head to work today, where they are expected to have a vote on the reid debt bill. yoryork -- byron york, from
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"washington examiner" and fox news contributor joins us now. why do we think it will work now when it hasn't worked before? what seems key to get us past tuesday? >> the first thing, the upcoming vote on the reid bill will not compromise on much of anything. they are going to kill it. kill the reid bill and that will be that. as far as the deal is concerned, republicans are going to be skeptical about what is coming out. the trillion dollars in cut, they're going to look at that carefully, is it really $100 billion a year over ten years? is it all backloaded toward the end, where it might not happen at all? what about this commission and these triggers. would it take more money out of defense, than it would out of other programs? they're not going to agree to that. democrats for their part are skeptical as well. would the cuts happen immediately? they don't want to see that. would they take too much out of medicare? so there is a lot of work that is left, my sense is there is a whole lot of work left to be done.
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you remember, the house and the senate has to pass the same bill. and send it on to the president. all we've been hearing is that leadership is closed. but they haven't sold the bill to all the members who have to vote on it. >> jenna: byron, i'm glad you brought it up. we talk about this moving closer to something, but what that something is we still don't know. you are skeptical here that we will have a deal? >> i'm skeptical that we'll have something today. i think we may go much closer to the deadline. look at the trouble that speaker john boehner had selling his bill to a lot of his members. and he still lost, i think, what 22. couldn't sell it to them. you're going to have to -- he is going to have to sell the bill to his membership. of course, he will have democrats voting for it, too, so he won't have to have the whole republican caucus, but both sides will sell it to the membership. that is not in any way done yet. >> jenna: what about us, byron? we talk about the back and forth between the two parties. all of these decisions really affect the american people. we were just talking about this earlier in the program
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whether or not the dam has been done already. that the confidence in washington to operate, to function. what are your thoughts on that? has damage been done here? or is this politics as usual? >> if a bill gets done, relatively soon, before 11:59 when it has to be done, the damage will heal later on. you have to remember that president obama still has a nuclear weapon that he has not used in this fight. that is, an address to the nation in which he soberly lays out what the government can and cannot pay if the debt ceiling is reached and the government can no longer pay for everything. i think that would bring enormous daniel and probably huge political damage for republicans. >> jenna: byron, the time question here, as we're so focused on the issue about debt. rightfully so, as it's right before us. play out the next several weeks for us, or even several months. what do you think that the legislators are going to be
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focused on? is it going to be a jobs plan? tax reform? what is next beyond this for d.c.? >> as you know -- senate didn't pass the budget last year. somebody has to pass a budget some time there will be a fight over that and continuing resolution to keep the government funded. whey see is the battle over the size and scope of the federal government and the federal spending is going to continue all the way through the election. now, the public says it's -- its number one, two, three issue is jobs. how does that play in the public's concern about jobs? that's what we will see on the campaign trail. >> jenna: we can't forget friday we have another jobs report and that adds another variable in the mix for the market and everything else. byron, nice to have you on a sunday. thank you for your perspective today. >> thank you. >> bill: jenna, we have a fox news alert on this. we expect the verdict soon in case of two american hikers charged with spying in iran. the trial for josh fattal and shane bauer wrapping up today
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in tehran. exactly two years to the day after their arrest. a third female hiker, an american, has been released. she was released months ago. they're accused of illegally crossing iran's border in 2009. and accused of being spies as well. our middle east analyst is with me now. good morning to you. >> good morning. >> bill: a verdict within a week. they have their trial today. on the start of the holy month of ramadan in the islamic world. is there a chance they're a step closer to freedom or is it the office? >> when we talk about the tribunal, verdict, judges, in the iranian islamic republic, we're not talking about independent judiciary. they're all appointed to the regime and they listen to what the regime want them to do. they're almost a tool of the regime. what the iranian regime is considering now, things we know and things we don't know, one they want something from us. they want somebody from us. or they want us to stop a policy to say in iraq or
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elsewhere. if they had made that decision, yes, regardless of ramadan, they would release them if they want to. so the next few days and weeks will be, you know, the answer to that question. >> bill: is the department of state of washington in contact in some, at some significantly lower level? that would give iran what, possibly? >> the assumption is that the united states institution, state department or others through third parties have been discussing and negotiating if you want, quote/unquote, with the iranian regime. not in an official manner. what the iranians would want from the united states, many reports have spoken they say we have iranian detainee terrorists. others are talking about we're now escalating with the ira iranian intimidation of iraq. what would they want from us? is to give them a pass in iraq. would that allow us to give
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them back? i don't think so, because our policies are not deferment negotiating with the terrorists. in this case, the two u.s. citizens are almost like hostages. but there may be a reason for why regime would release them and it could be part of the strategy. >> bill: they released the woman about a year ago now. if they're not guilty, why give them anything? >> well, basically, because they could continue with this scenario, they could put pressure on the parents, which is understandable, on our community and say oh, we released one. so there is a possibility of releasing one, becoming hardened with regard to iran there are, there are the experts in hostage-taking. remember, it all began with office-taking and hezbollah, in lebanon has been an expert on that. we hope really they understand they need to release them or there will be pressure on the regime. >> bill: we get a verdict in a week. what is your version of what happens? >> everything is playing now. if they release them, it means they have analyzed that this
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is the best they can do, or they have obtained what they wanted or half of what they wanted. if they don't release them, there is no way for the administration than putting significant legal pressure on them. national law. >> walid, thank you. thank you for coming on sunday. appreciate it. >> thank you. >> jenna: think about the families, waiting to see and now have to wait another couple days to find out what is next. what's next is the question of the day on a lot of our stories. lawmakers may be close to a debt ceiling deal. if they don't reach an agreement or even if they do, we can still see the country's credit rating downgraded. that has a lot of effect for all of us. we'll find out what it means for our families straight ahead. >> bill: in new hampshire, there is a search for a missing new hampshire girl. what police are now doing to leave no stone unturned. we're watching developments out of northern new hampshire. you will hear about those in a moment. >> the word is out, the more of a chance of her coming home safe. there is no other option at this point. she is going to be okay.
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>> jenna: a fox news alert here. lawmakers about to get back to the people's business, as the clock ticks down to the debt limit deadline. we'll take a look here. on capitol hill, on a beautiful sunday morning. where there is so much going on right inside that building there. the senate expected to meet at 12:00 eastern time. less than 40 minutes from now on the east coast. the house will start up an hour after that. we understand negotiations went well in to the night, with senate minority leader mitch mcconnell saying they are very close to a deal, if he can recommend it to the members. he can recommend the deal. that is key there. he didn't say he is behind it. he can recommend it, though. any deal, though, at this point as we point out is still tentative. we will bring you up to date. >> bill: talking about a
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$3 trillion deal. more which is where we left off on friday. >> jenna: $3 trillion is a lot. >> bill: more on that in a moment. in the meantime, police planning to question every person in a small new hampshire town, as they look for this missing fifth grader, selena cass is her name. she was last seen in the bedroom late on monday night. investigators offering rewards of up to $30,000 for information to lead to her whereabouts. the f.b.i. is involved in this, along with the local police in new hampshire. >> you getting this message out is producing hundreds of tips. we are looking at those tips. we are honing the investigation based on those tips. we continue to do that. we need to do that to find selena and to bring her home safely. >> bill: time is of the essence. the former deputy direct for for the f.b.i. buck, good morning in a steamy and hot dallas, texas. what do you think is the best clue right now for investigators? >> well, of course, all i know is what has been on the news. 9:00 on monday evening, the
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young lady is missing with no clues, no sign of forced entry, or any sort of foul play. she has just gone missing. the things i would be looking at are her computer. if she has a cell phone. i understand she's probably part of the social network. i'd be talking certainly to her 13-year-old sister, who probably knows a lot more about what she does and who she hangs around with than her parents do. and then, of course, you have to look at the dynamics inside the family. they are only a mile south of the canadian border. so, has there been some dialogue on a computer with somebody that portrays themselves to be person who is interested in her? there is just all kind of dynamics. without any physical evidence at this point, that at least has been publicly announceed, i know that they have done aerial searches with infrared
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and dogs. it sounds like to me that in going through they are doing everything humanly possible to find this young lady. and hopefully she will be safe and just have gone out on her own. >> bill: i hope you're right about that. the computer could hold a lot of clues. why is it, and is it relevant, for authorities to put out the information about her stepfather, who had some sort of criminal past behavior, mental illness? is that relevant at this point? >> it's certainly relevant inside the information. i don't think they should have put it out publicly. but certainly, the investigators have to look at the dynamics of the family, and he lives in the house. and she apparently, there was no break-in or any forced entry. so he would have to be a person of interest. but i don't think that it was either appropriate or necessary to identify him to the outside world in that manner. >> bill: selena cass is her name.
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a fifth grader. count of 800 in northern new hampshire. you mentioned the border a mile away. part of the reason why the f.b.i. isin on this. 603-846-3333 if you have any information on this story. buck, thank you. >> you bet. >> jenna: fox news alert for all of us, bill, as we are racing against the clock. congressional leaders are cutting it close as they scramble to reach a debt deal, new details of a possible agreement. then this broader question. where exactly are we, america, when it comes to our finances? what about our credit? how good is it anyway? how is it going to affect each and every one of our families? we'll get you the answers straight ahead. >> some of the things that are coming forth hold promise. the key elements are still being resolved. i know gene sperling was in a painful position earlier on your show. we want to move this forward. we have want to avert this economic disaster that would occur if we default.
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>> bill: back to the news of the hour and a fox news alert. if you are just waking up and tuning in, we have new developments already today. in the debt matter. congressional leaders in the white house possibly closing in on a deal to raise the debt ceiling and fund the federal government, raising the debt ceiling to the year 2013, which would take you through the next election cycle of 2012. mike emanuel, now roommates with neil cavuto up there on capitol hill. good morning to you. you have done terrific work all weekend. the tentative deal that is being talked about, mike mcconnell said it's $3 trillion. david plouffe, advisor to the president said it could be as much as $4 trillion. either way, no matter what it is, you need the votes in congress to get it passed. what we saw on friday was quite revealing. because 22 republicans in the house voted no on the boehner
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bill. so without having a lot of specifics about what is inside of what they talked about over the past if hours -- in the past 24 hours, where are you now? >> bill, clearly, there is some fine-tuning going on, recognizing that you don't have a deal until you have the votes to pass it. and so, they are going to be counting on the key leader to the vote. that includes president obama and it includes democratic leader nancy pelosi in case the tea party folks in the republican house are not happy. so today, the republican whip in the house, kevin mccarthy, was emphasizing how far things have come. take a listen to him. >> remember how far we've come. three months ago, this president laid out that he wanted a debt ceiling with no cut whatsoever. a short time ago, he just wanted more trillion-dollar stimulus. now we're talking something much different. as many cuts, before you get to raise it. the idea that no tax increases that the president wanted.
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so it's moving in the right direction. >> so you can bet that congressman mccarthy, also speaker john boehner will be selling whatever the final deal is to their members, trying to see how many votes they are going to get. they know they are not going to get everybody, but if the president and other democratic leaders are engaged in getting votes from their constituencies, their bases if you will, they are hopeful they will get something done. >> bill: based op what we understand, even if this did pass, it would not be the end of the line. we would likely revisit this in the fall. mcconnell is talking about no tax increases. it has its own loaded suggestions. he said he is close to presenting the deal to republican lawmakers. the democrat chuck schumer says he is still talk about taxes as a tradeoff. or cuts in military spending as a tradeoff also. so, on the democratic side, if it is true that boehner, mcconnell are negotiating directly with the white house, to see what the president
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would accept and sign and not veto, where does it leave democrats? >> thalast night, there were a lot of long faces from the key leaders when you look at harry reid and the democratic leader in the house, nancy pelosi. they had come back from the white house and they really didn't have much to say. they looked like they were pretty unhappy with where things stood. this morning with the clock ticking, senator dick durbin, a key democratic senator sounded a little bit more upbeat. take a listen to him. >> i a much more positive feeling than i did 24 hours ago. there is an active negotiation underway. >> bottom line, i talked to a lot of members both senators, congressmen, republicans, democrats. they recognize time is running out. they also recognize a lot of their constituents are just sick of this and just want washington to get something done. so they are hopeful talk of a tentative deal actually means there will be a deal. bill? >> bill: it sounds like
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those folks need a nap down there. i guess they'll get one eventually. mike, thank you. >> thank you. >> bill: they convene in 28 minutes on the senate side. we are talking about a vote sometime in the afternoon. thank you, mike. jenna? >> jenna: no matter what happens here with this deal, the united states could still be at risk of losing our credit worthiness, our triple-a credit rating. that is the highest possible rating that can be given to any country. triple-a rate borrowers can usually secure loans at lower interest rates. at a consumer level, that means we get lower interest rate as well. u.s. held triple-a rating since 1941. it turns out, though, that some countries with only a a.a. rating, a step below us, pay less in interest. we have want to talk a little bit about this with steve moore, the senior economic writer for "wall street journal." steve, we hear a lot about if we default, or i should say we get downgraded -- they're not necessarily linked together. if we get downgraded as a
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country, suddenly, interest rates would hike for all of us. could the opposite happen? could interest rates fall? >> i'm glad you mention the difference between default and a downgrade. i'm so infuriated when i read the newspapers and watch news shows that say two or three days from a default there is not going to be a default any virtually any circumstance. we have the cash to pay the bond holders and preserve the full faith and credit to the government. i want to make that clear. on the issue you mentioned about a downgrade, i think there is a significant chance of that downgrade happening. that is not going to happen because we haven't passed the debt ceiling on time. it's because we're borrowing $14 trillion and projected to borrow another $10 trillion in the next ten years. that's why the negotiations are so important. it's not just getting a deal that is important. it's getting a deal that cuts spending and gets the debt down. i do believe, jenna, even if we see a downgrade, we're not going to see a big spike in interest rates, because after
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all, the safest debt instrument out there in the entire world is still a u.s. treasury security. about the only thing you can purchase these days that is safer than that is purchasing gold. >> jenna: it's interesting to just pause for a second, because we talked about the downgrade being from a.a.a. to greece, in the fast lane. >> right. that is a great point. >> jenna: that is not true. >> that is not what we're talking about. it's interesting, in the last couple of months since there has been this increased talk about the u.s. possibly losing its a.a.a. bond rating what has happened to interest rate on treasury security? they haven't risen. they have fallen a little bit. anytime there is an event around the world, the earthquake, japan, tumultuous event in the middle east or an upsetting event around the world, what do people do? they purchase the treasury bills, u.s. treasury bills. i don't think this is the end of the world if we see a downgrade, but it's a blemish
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on our status in the world, jenna, we're the a.a.a., the gold standard of currency. if wize that a.a.a. currency, i think we will lose a bit of standing in the global economy. >> jenna: interesting to talk about the psychological effects of that. that could take us in different directions, steve. we have to talk about broadly the economy overall. as i mentioned, we're so focused on the issue of default and downgrade we forget an economy is operating daily regardless of that. i'd like to share with you what one chief white house advisor had to say about the possibility of a double-dip recession this morning and get your reaction. let's take a listen. >> i am not worried that we are going to have a double dip recession. but it's imperative on all of to us do everything to reduce the smallest chance of that and increase the chance we get the rebounding growth many private sector forecasters are still projecting, if we can take the speckor of our nation's first default, take
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that cloud of uncertainty off the economy. >> jenna: a tough reading on the economy on friday. gene sperling on sunday sunday. steve, what do you think? double dip, still in a recession, maybe we're out of it? what are your thoughts? >> i been friends with gene sperling for a long time but i disagree with everything he just said. first, i do think after the report, jenna, that came out on friday that was a miserable report on the u.s. economy, we have been growing at about 1.5% over the last three quarters. we should be growing three or four times faster than that. you are seeing notices of layoffs at major companies. i think he is wrong. unfortunately, there is a risk of double dip recession. the double dip recession isn't going to come because we haven't passed a debt deal. gene has it wrong. the reason we have a double dip recession is because again, we have enormous debt that nobody in washington seems capable of doing anything about. and quite frankly, the president's jobs program over the last couple of years, $800 billion stimulus did not work. >> jenna: must be interesting dinners between
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you and gene when you are buddies. >> i notice he has a little more gray hair than he did a couple years ago. that's what the job will do to you. >> jenna: don't we all. thank you very much. nice to have you on a sunday. >> great to be with you. >> jenna: talk to you soon. >> bill: as you were talking there, this is what reuters is reporting. out of the white house. the white house officials, the white house would be open to raising the debt ceiling for a couple extra days. deadline is tuesday, 2nd of august. if the lawmakers can reach that deal, they might need to extend it by a couple of days anyway because of the procedural roadblocks between the senate and the house and finally getting the language right for final bill, down to the white house, to get the president's signature. can you do all of that over the next, oh, 48 to 60 hours? probably not. >> jenna: if you want to sleep or another. >> bill: correct on that. so they would extend it for a few days, thursday or friday so the roadblocks could be cleared. another line we're watching now, crossing to the white house in the reuters news
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agency. so where are we, america? are we heading closer to a deal? that's what they say. that's what they say. we have heard it before. it could end a bitter debt limit showdown. there are 14 trillion reasons to make this batch of negotiation different from the past. premiering the revolution by lg.
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>> jenna: a fox news alert this time on the senate. expected to resume work on capitol hill less than a half hour from now. about 15 minutes, in fact. even the lawmakers in the white house are said to close in on a debt limit deal. they are closing in on a deadline. now we have a report from reuters that maybe the white house would be l be open to extending the debt limit for a few extra days to give everybody more time. let's ask fox news senior capitol hill producer chris turner about this. he has been following this moment by moment. what exactly is the timing like as it sits right now on this sunday? >> well, i can tell you in all of my years of covering the senate and congress, jenna, i
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never seen anything more, path more unclear and things are fluid. that said, my gut tells me that a little later we might see a test vote on harry reid's proposal but at this point it's really irrelevant. i thought it was telling earlier on chris wallace's show, "fox news sunday," that the number two republican in the senate alluded to looking at this field that is coming together over the next several days. jon kyl rarely does anything by mistake, the republican of arizona, number two in the senate. he rarely ever utters a word by mistake. but accident. so i think that was pretty telling. it would be easy enough for them to extent the debt limit for a couple of days to buy them some time. they have always said they would do it if they knew they were close to a deal coming together. >> jenna: so what does this look like? being that you have been able to walk the halls there in congress, and see what the work is like being done.
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so what is actually happening behind closed doors right now? are they writing up a bill? is something starting from scratch? are they amending something already out there? what needs to be done before it could even start its way through congress, whatever path that is? >> remember, they have been doing this in one shape or another for almost a year now, believe it or not. they have a menu, what aides will describe often as a menu of options. and there is nothing that is really going to come out of the blue. so what they have to do now is put a really delicate, you know, thousand-piece puzzle together in the next couple of days. so that all of the "i"s are dotted and the "t"sare crossed and it's really significant and really difficult. i can tell you from experience, legislative aide, general counsel, to the members are working their fingers to the bone. i understand last night after a whirlwind of talks constantly via the phone with
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the white house among mcconnell's staff, white house staff, biden, vice president biden was involved, they worked through the night. and i guarantee you there are some all-nighters ahead for these poor people, and the budget analysts because they will work in constant tandem with them to know all of their math squares. they have the numbers in line and ready to go when they pull the trigger. >> jenna: trish, that means a bunch of late nights for you after a whole bunch already. we could don't our work without you. trish, thank you for taking time to talk to us on phone today. we appreciate all of your work always. trish turner. one of our great producers on capitol hill. couldn't do it without her. >> bill: amen to that. starting to get details now. things are moving as we expected on a sunday already now. a lot of action on the hill that you are going to all see play out in the coming minutes. details emerging on a possible debt limit deal between republican leaders and the white house. the senate convenes in 15 minutes. you get a vote sometime after 1:00 today. we're told we're close, but we have heard that many times
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>> bill: if you are just waking up, fox news alert for you on a sunday. negotiators should be closing in -- we have heard it before -- but closing in on a debt ceiling agreement with the white house and the republican leadership. the lawmakers and the white house hammering out details op a tentative deal. now set to be presented to the republicans and the democrats in congress. tray harden is a former republican come pain manager and aide to republican house leadership. also here, democratic pollster margie o'maro. good morning to both of you. terrific for you to come in today. nice to see you both. i think america is trying to follow. this i think it's confusing. i think you need a flowchart to see which way this thing is going right now, where it's
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developing. but ultimately, trey, as it is right now, do we get deal? and if so, which side is pleased more? >> yeah, bill, it's a great question for your viewers because i to imagine they're very confused about how we go from friday to where we are today. and, you know, the -- this deal requires bipartisan vote. it always has. the unfortunate thing is that this could have been talked about weeks ago. but at the expense of the nerves of the american people they wait until the 11th hour. but why it is different right now is because we're at a point in the process where the people involved, the policy makers, the politicians in d.c. recognize that their political careers are at stake,if they do nothing. so i think we have a deal. i think what reuters is repor reporting about, you know, the debt limit day being extended a few days signifies a fact we
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do have a deal, because there are logistical things that need to take place. >> bill: we just spoke to our capitol hill producer trish turner, even if you extent it a few days you have to get the votes on that. even if you get the deal in the senate, i don't know what the house will do. marjorie? >> one concern is you have house republicans see the dealer holding a 6 and they think they have a blackjack. so the american people are saying step away from the table and let's act like grown-ups. it's important to see the deal that is worked out this afternoon. you're right, people still need to vote on it in the house. what we learned the past week is that there is a lot of things that have been obstacles. one of them is the republican caucus has had a hard time coming together, to move this ball forward. >> bill: we saw 22 defections, trey, on friday. i think that is an indication that you can talk to the guys all you want, but they are going to tell you look, i'm here and i made a promise to the folks back home i'm not
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going to raise the debt ceiling. just not going to do it under any circumstance. you can cut your spending but don't tax us anymore and get it under control. they have held to the line. it's been very difficult for john boehner, but he did get a deal on friday afternoon. he got the bill passed by the evening time. if you're going to get an extension for a couple of days, with the legislative process to work its way out between the senate and the house, get the language together so the president can sign it, that will take you past tuesday. and if you go past tuesday, you might need yet another vote. so i mean, it's hours at the moment. you can just watch the clock right now. whether it's viii hours or 60 hours, it's time. >> yeah. absolutely, bill. there is no question that boehner has the toughest challenge. he has done a skillful job which is capable in doing in bringing the folks together.
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there are always going to be defectors there were on friday but at the end of the day, he got it through. being in the town for a while and see how the folks come down to it, when they get to this point, and you see the rhetoric being toned down, you see this amount of meetings happen, the president finally getting engaged, i think what that tells you is that a deal is done. and that those votes are almost of a procedural and logistical nature. >> bill: we heard it before. i just want to use caution with that, because we don't know. margie, no taxes so far, dramatic cuts in spending, we're told do republicans win on this? >> you are both absolutely right. the american people are confused about this. and i don't blame them in a way that has been played out. i think it's really important when looking at this deal to think about and look at the revenue, what revenue include included. that is not raising taxes on
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us, unless the "us" is wealthiest among us. it's not raising the taxes on anybody. it's closing the corporate tax loopholes and closing the loopholes toward top. that is a piece of the misunderstanding. the other piece is to say that boehner, just because something eventually passes has done a masterful job doesn't look at what he had to do to get it to pass. he had to go further to the right. that has not been something that the markets responded well to, or economists and the rating agency respond well to. and not something that the american people respond well to. >> bill: thank you. >> bill, i would close and say -- >> i'm sorry, i'm out of time. they are telling me we have to get to a commercial here. trey, appreciate your time. >> understood. thank you. >> bill: even joy your sunday afternoon. all right? >> thanks. >> bill: more headlines to come. thank you. >> when people tell you in your ear to go, you have to go. fox news covering each and every moment here, congress about to begin a rare sunday session minutes from now. latest from d.c. straight ahead. [ rge ] psst.
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>> bill: the dominique strauss-kahn sexual assault plot thickening, as the accuser talked about her claim. how has the media reacted? liz trotta has her commentary now. liz? >> thank you very much, bill. you know, this is a nice, i want to get something off the table real quick. that is that yesterday in the media segment, i returned to jeff faiger as chairman of nbc news, so i want to say he's
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chairman of cbs news. itch didn't want that mistake to lie there unattended. anyhow, the latest story we're talking about this week, the big media story was the media assault launched by the diallo, the lady from guinea who is charging the french former head of the imf with rape, or at least attempt degree. what has happened is she has gone public. a big media campaign, newsweek and abc news from morning till night. this is the first time this has happened that anybody can remember in a case so high profile, where a key witness has decided to go public. this is pressuring the district attorney's office to come to a decision on this. he has been completely mum so far and speculation is rife. >> bill: thank you, liz trotta, with a story that

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